| A number of insurance claims for bodily injuries and disabilities, which were greatly exaggerated, have surfaced in recent years. Because of this alarming trend, it has become increasingly necessary for insurance companies to engage specialists from overseas to assess the claims.
This was stated by Ms Dorothy Newn, the chairperson of General Insurance Association of Brunei Darussalam, who was speaking during the one-day insurance fraud and investigation workshop at the Ministry of Finance building yesterday.
"Insurance fraud is a serious problem that costs the insurance industry billions of dollars worldwide each year," she said, adding that it is also a growing problem in the Sultanate.
She noted that if insurance claims continued to escalate, the cost would eventually fall back on policyholders, and they would have to pay higher premiums.
"The direct financial cost to the insurance industry of paying false claims is largely passed onto policyholders in the form of raising premiums," the chairperson of General Insurance Association said.
However, the total cost does not end here, she warned. "There are also significant direct costs to the community that affect services and consumer items."
In light of this, the insurance industry in Brunei must continue to work together to produce an effective anti-fraud strategy that allows companies to remain competitive and profitable, Ms Newn said.
Yesterday's workshop was organised by the General Insurance Association of Brunei Darussalam with support from the Financial Institutions Division, Ministry of Finance. It was participated by some 150 people comprising those from local insurance agencies, financial institutions and other government agencies.
Present as guest of honour was Hj Mohd Rozan bin Dato Paduka Hj Mohd Yunos, Deputy Permanent Secretary at the Ministry of Finance and Acting Director of Financial Institutions Division.
Five invited speakers were on hand to share their expertise on insurance fraud.
Among the topics discussed were: "Claims fraud and what constitutes fraud in insurance" by Mr Andrew Ong Teck Wee, the managing partner of CCW Partnership; "The role of investigators in claims assessment" by Senior Supt (Rtd) Walter D Boyd from Boyd Investigations & Risk Management; "Forensic investigation and fraudulent claims" by Mr John Horswell, a chief forensic consultant from Malaysia; "The role of loss adjusting in managing claims" by Mr Bob Neo, MD of McLarens Young International, Singapore; and, "Bodily injury assessment as a tool for managing claims" by Dr Mohamed Rafick Khan bin Abd Rahman, an occupational and insurance specialist from Oshcare, Malaysia.
--By James Kon / Courtesy of The Borneo Bulletin |
